Anand Rathi: Heidelberg Cement  To See Demand Get Back On Track 
Silhouetted workers carry building materials at a construction site in New Delhi, India. (Photographer: Amit Bhargava/Bloomberg News)

Anand Rathi: Heidelberg Cement To See Demand Get Back On Track 

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

On its Q1 FY21 sales volumes dropping 32% YoY, Heidelberg Cement India Ltd.’s revenue/ Ebitda/profit after tax fell 30%/29%/38% YoY.

Ebitda/tonne rose 4% YoY to Rs 1,247, however, on firm realisations and cost optimisation. The net debt-free balance sheet continues.

The higher volume dumping from neighbouring states (Rajasthan/East) will continue to keep prices in check. The company continues to operate with negative working capital.On June 30, 2020, it had a net cash balance of Rs 1.6 billion. Management said it would look at greenfield expansions.

Regulatory hiccups (maximum promoter shareholding and mine transfer) have postponed the Zuari merger.

Click on the attachment to read the full report:

Anand Rathi Heidelberg Cement Q1FY21 Result Review.pdf

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